Japan's real wages fall at fastest pace in 9 years

Japan’s real wages, adjusted for inflation, fell by the most in nearly nine years in January. Markets are closely watching wage increases as Bank of Japan officials have signaled that wage increases along with 2% inflation are essential to scale back ultra-easy monetary policy. Real wages, adjusted for inflation, fell 4.1% in January from a year earlier, according to data from Japan’s Labor Ministry, the biggest drop since May 2014. Analysts say inflation-adjusted real wages have likely bottomed out. Total cash earnings, or nominal wages, rose 0.8% year-on-year in January, the data showed, far below a revised 4.1% increase in December, when a one-off winter bonus boosted overall wages.